Make empty nest shine before it's on the market

May 24, 2008

For years, you've spent handsomely to raise your children -- paying for everything from sneakers to college tuition to wedding tabs. Now it's your time to retire. But to do so, you need to sell the big family house, pulling out whatever equity you have remaining. Beforehand, you want to spend as little as necessary on presale fix-ups. As many baby boomers approach retirement, they find themselves more cash-strapped than expected. Not only have they extracted funds from their savings accounts, many also have mined a portion of their home equity, says Mark Nash, a Coldwell Banker broker and author of "1001 Tips for Buying and Selling a Home." "Up until three to five years ago, people were using their houses like piggy banks -- drawing on home equity lines for everything from college costs to car purchases and vacations," Nash says. Most longtime homeowners still have substantial equity left in their property -- unlike the minority who bought a home during the recent boom era when values were flying high. But no matter how much equity they have in reserve, today's cost-conscious sellers want to maximize the proceeds from their sale and minimize the cost of presale fixes. "People are all about controlling costs for everything -- especially now with the economy in rough shape. Folks are crunching numbers, clipping coupons and doing anything they can to save on every aspect of their lives," Nash says. Fortunately, most home sellers can ready a property for sale with relatively little expense, he says. Here are several pointers for empty nesters trying to save on the sale of their home: -Throw a painting party. "The look of fresh paint is a great stimulus to home buyers looking for a place to get a fresh start on life," says Merrill Ottwein, former president of the National Association of Exclusive Buyer Agents (www.naeba.org). Yet as Ottwein points out, painting can be expensive, particularly if you hire a painting company. Or it can be quite inexpensive, assuming your only costs involve paint and other supplies. One way around the cost of professional painters is to recruit friends for a "painting party." Request that they come to your house one Saturday at 10 a.m., wearing beat-up clothes and ready for a full day of painting and feasting. To Nash, the essential element to a good painting party is to feed your friends plenty of "comfort food," including such backyard barbecue items as hamburgers, hot dogs and ribs. Another element is playing fast-paced music to keep up momentum while painting. Use of voluntary labor for painting can save a substantial sum. For well under $1,000, you can obtain enough paint and supplies to redo the interior of an average-sized three-bedroom house, Nash estimates, adding that it usually costs three to four times that to hire professionals. -Turn to power cleaning for big impact. If you're an empty nester who's lived in your place for years, chances are you've allowed yourself some latitude on housekeeping. "People hate to clean -- especially those who've worked 60 hours a week at the office and come home tired," he says. Yet doing an in-depth cleaning can be one of the most cost-effective steps you can take to distinguish yourself from rival homes for sale in the neighborhood. Keep in mind, however, that the sort of cleaning your place needs is not the kind of superficial work you typically do before company comes over for dinner. "We're talking about professional-grade cleaning that reaches every cobweb and corner, from the lowest level of your house to the top of the attic. Plus you have to clean every window, inside and out, no matter how high," Nash says. Do you lack the energy to clean your home so painstakingly? If so, Nash advises you to spend the few hundred dollars it costs to hire a highly recommended cleaning company. "For home sellers, an investment in cleaning services will give you a tremendous return on your investment," he says. -Hire a real estate agent trained in staging property. These days it's commonplace for savvy home sellers to engage the services of a "home stager." This is an interior design-minded professional who removes superfluous furnishings and then rearranges the remaining pieces to make the space seem larger and more appealing. "Staging, which typically costs around $500, gives your house a whole new attitude," Nash says. But cost-conscious empty nesters -- who seek to save every possible dollar for retirement -- can obtain top-quality staging services for no extra cost by choosing a listing agent who is trained and talented in the art. "More and more agents are adding this service to their repertoire. To find one who's skilled at staging, look at marketing brochures for other properties they've staged to judge the quality of their work," Nash says. -Have your home inspected before buyers come through. Back in this decade's boom years, some buyers -- competing with other bidders for the same property -- would waive their right to a professional inspection to make their offer more alluring. But buyers are feeling so empowered these days that rarely do they pass up the chance for an inspection. And if their inspector discovers a major problem with your home, it could be curtains for your deal. As Nash says, smart home sellers won't risk a botched deal, one that could put their moving or retirement plans in jeopardy. To avert this outcome, he urges you to hire your own inspector before your property goes up for sale. Granted, it will probably cost $200 to $600 to hire an inspector -- more if the inspector locates problems that require repair, such as a flawed air-conditioning system or a leaky roof. But that could be money well-spent if it preserves your opportunity for a smooth-as-silk deal. "Nowadays buyers whose bids are conditional on a home inspection won't hesitate to walk away if some scary problem jumps out of the closet during their own inspection. Smart sellers resolve all the big issues before the first prospect comes through their house," Nash says. You can e-mail Ellen James Martin at ellenjamesmartin@gmail.com.SMART MOVES ELLEN JAMES MARTIN